Coal prices in Tianjin drop in the second week of June

According to the Tianjin market operation monitoring data, in the second week of June (June 5-June 11), the average price of coal in Tianjin was 716 yuan/ton, a price drop of 1.4%. There are many reasons for the recent sharp decline in coal prices. Among them, traders and overseas coal sales have put a lot of pressure on the market, but the transaction volume is very small. The current price drop only reflects the sentiment of the market, and to a certain extent deviates from the basic noodle. On the supply side, the overall supply in the production area is stable, and the import volume has fallen from a high level. On the demand side, the profits of downstream iron and steel enterprises are sluggish, production enthusiasm is weak, and the demand for molten iron is declining; and with the arrival of the off-season, short-term demand expectations are relatively weak, and coking coal prices are under pressure. At present, the bottom range of coal price decline has been basically verified. With the downward turning point of inventory, the market has gradually eased the downward pressure on coal prices brought about by high inventory, and the pessimistic expectations for the economy have almost unanimously turned to the new stable market. In anticipation of growth policies, coal prices are expected to remain stable next week.